FTR Holder definition

FTR Holder means the PJM Member that has acquired and possesses an FTR.

FTR Holder means the PJM Member that has acquired an FTR in an FTR Auction or by any other means. (1.3.2A.03) “Effective FTR Holder” shall mean an FTR Holder, any Affiliate or subsidiary of the FTR Holder, any other PJM Member that is under common ownership with the FTR Holder if the FTR Holder is a privately held company, and/or for publically traded companies, any other PJM Member that has over 5% common ownership with the FTR Holder. Further, any two PJM Members shall be considered Effective FTR Holders if they share common ownership in any third party business entity that is a PJM Member. The term FTR holder or holder of FTR is used throughout the Tariff and OA. However, the term is not defined. Thus we are adding a definition and will use the defined term in all places where “FTR holder”, “holder of FTRs” or holder of Financial Transmission Rights” currently exists, except as described below regarding use of the new defined term Effective FTR Holder. In addition, PJM proposes to add a definition of Effective FTR Holder, and to use that defined term in the FTR Forfeiture section of the Tariff and OA (Tariff, Attachment K- Appendix sections 5.2.1(b) and 5.2.1(d), Tariff, Attachment M-Appendix Section VI, and OA, Schedule 1, sections 5.2.1(b) and (d). The reason for these changes as they pertain to the FTR Forfeiture Rule contained in those Tariff and OA sections, is to ensure that the scope of entities PJM and the IMM for purposes of the FTR Forfeiture Rule is appropriate. The intention is to ensure all entities under common ownership or control will be monitored for purposes of the FTR Forfeiture Rule. The proposed definition of Proposed Clean-Up, Clarification and Corrections to Governing Documents FIRST READ PROPOSED REVISIONS Dated: October 13, 2015 For Discussion at GDECS October 23, 2015 Agreement, Attachment, Section, Title Current Language Proposed Revisions Rationale Effective FTR Holder clarifies that intention.

FTR Holder means the PJM Member that has acquired an FTR in an FTR Auction or by any other means. Revised for the 1/22 GDECS Meeting (1.3.5.01) “FTR Holder” shall mean the PJM Member that has acquired and possesses an FTR. The term FTR holder or holder of FTR is used throughout the Tariff and OA. However, the term is not defined. Thus we are adding a definition and will use the defined term in all places where “FTR holder”, “holder of FTRs” or holder of Financial Transmission Rights” currently exists, except as described below regarding use of the new defined term Effective FTR Holder. In addition, PJM proposes to add a definition of Effective FTR Holder, and to use that defined term in the FTR Forfeiture section of the Tariff and OA (Tariff, Attachment K- Appendix sections 5.2.1(b) and 5.2.1(d), Tariff, Attachment M-Appendix Section VI, and OA, Schedule 1, sections 5.2.1(b) and (d). The reason for these changes as they pertain to the FTR Forfeiture Rule contained in those Tariff and OA sections, is to ensure that the scope of entities PJM and the IMM for purposes of the FTR Forfeiture Rule is appropriate. The intention is to ensure all entities under common ownership or control will be monitored for purposes of the FTR Forfeiture Rule. The proposed definition of 1.3.

Examples of FTR Holder in a sentence

• A contractual right, subject to the terms and conditions of the ISO Tariff, that entitles the FTR Holder to receive, for each hour of the term of the FTR, a portion of the Usage Charges received by the ISO for transportation of energy from a specific originating Zone to a specific receiving Zone and, in the event of an uneconomic curtailment to manage Day-Ahead congestion, to a Day-Ahead scheduling priority higher than that of a schedule using Converted Rights capacity that does not have an FTR.

• Nothing in this section shall preclude the Market Monitoring Unit from action to recover inappropriate benefits from the subject activity if the amount forfeited is less than the benefit derived by the Effective FTR Holder.

• All positive target allocations will be summed for an FTR Holder for the month and compensated as Transmission Congestion Credits under Section III.5.2.5. III.5.2.5 Calculation of Transmission Congestion Credits.

• A target allocation of Transmission Congestion Credits for each FTR Holder shall be determined for all applicable FTRs. Each FTR shall be multiplied by the Day-Ahead Price Congestion Component differences for the associated receipt and delivery points.

• The Market Monitoring Unit shall calculate Transmission Congestion Credits as required under Operating Agreement, Schedule 1, section 5.2.1(b) and Tariff, Attachment K-Appendix, section 5.2.1(b), including the determination of the identity of the Effective FTR Holder and an evaluation of the overall benefits accrued by an entity or affiliated entities trading in FTRs and Virtual Transactions in the Day-ahead Energy Market, and provide such calculations to the Office of the Interconnection.

• The sum of: 1) the revenues received by the Participating TO from the ISO for Wheeling service, Usage Charges (excluding any Usage Charges received by the Participating TO as an FTR Holder) and from the sale of an FTR; and (2) the difference between the costs incurred by the Participating TO associated with Existing Rights and the amount of such costs recovered by the Participating TO from the Existing Rights customers (“ETC Cost Differentials”).

• To account for the collection of Monthly Transmission Congestion Revenue associated with negative FTR Target Allocations, Transmission Congestion Credits will appear on the Customer Bill as a net value representing the total monthly positive FTR Target Allocations reduced by the total negative FTR Target Allocations for the month for that FTR Holder.

• The objective of the annual excess Monthly Transmission Congestion Revenue distribution is to cover any FTR Holder FTR Target Allocation Deficiencies, and to distribute any remaining excess at the end of the year to those entities that paid Congestion Costs pro-rata based on the total amount of Congestion Costs paid.

• A Target Allocation of Transmission Congestion Credits for each FTR Holder shall be determined for each Financial Transmission Right.

• Each FTR shall entitle the FTR Holder to a share of Usage Charges attributable to Inter-Zonal Congestion for transfers on that path from the designated originating Zone to the designated receiving Zone in accordance with Section 9.6. An FTR is a right in one direction only.

More Definitions of FTR Holder

FTR Holder means the PJM Member that has acquired and possesses an FTR. 1.3.2A.03 “Effective FTR Holder” 1.3.2A.03) “Effective FTR Holder” shall mean: The term FTR holder or holder of FTR is used throughout the Tariff and OA. However, the term is not defined. Thus we are adding a definition and will use the defined term in all places where “FTR holder”, “holder of FTRs” or holder of Financial Transmission Rights” currently exists, except as described below regarding use of the new defined term Effective FTR Holder.

FTR Holder means the PJM Member that has acquired and possesses an FTR. The term FTR holder or holder of FTR is used throughout the Tariff and OA. However, the term is not defined. Thus we are adding a definition and will use the defined term in all places where “FTR holder”, “holder of FTRs” or holder of Financial Transmission Rights” currently exists, except as described below regarding use of the new defined term Effective FTR Holder. In addition, PJM proposes to add a definition of Effective FTR Holder, and to use that defined term in the FTR Forfeiture section of the Tariff and OA (Tariff, Attachment K- Appendix sections 5.2.1(b) and 5.2.1(d), Tariff, Attachment M-Appendix Section VI, and OA, Schedule 1, sections 5.2.1(b) and (d). The reason for these changes as they pertain to the FTR Forfeiture Rule contained in those Tariff and OA sections, is to ensure that the scope of entities PJM and the IMM for purposes of the FTR Forfeiture Rule is appropriate. The intention is to ensure all entities under common ownership or control will be monitored for purposes of the FTR Forfeiture Rule. The proposed definition of 1.3.